iPod faces tough competition with PSP

In a Motley Fool article entitled "Will Sony Bite Apple?", Rick Munarriz says Apple should be more than a little scared of the PSP.

"Why should the Apple digital-music behemoth worry about a gaming machine? Well, the PSP will be able to play back all forms of media, including music, through Memory Stick Duo storage devices. No, the capacity doesn't match that of Apple's iPod, and the PSP certainly doesn't feel as stylish, but if Sony starts releasing some of its popular-music acts in the system's UMD format to go along with the rewritable Memory Stick, things would start to get interesting. Sony clearly has a hot toy on its hands, and while the first few million units that will sell this year may be earmarked for the 100 games in development, the device may eventually fill the need for listening to digital music on the go."

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